KPMG has been approached by Tata to structure the deal
American International Group (AIG), after exiting from its IT outsourcing outfit, is now planning to sell its 26% in Tata AIG Life Insurance to its Indian partner. KPMG, a consulting & auditing firm, has been approached by Tata to structure the deal, reported The Financial Express.
Tata holds 74% in the life insurance joint venture. However, AIG will continue in another joint venture, Tata AIG General Insurance.
As per analysts, AIG’s 26% stake in Tata AIG Life could fetch up to INR800 crore, as AIG will charge Tata a premium for its expertise provided to the JV. Tata AIG Life, based in Mumbai, is yet uncertain whether Tata would run the business itself or divest the 26% from AIG to other foreign partners, reported Indian Express.
AIG sources stated that the company is in the restructuring process in its life insurance business in Asia, which operates under the ambit of American International Assurance (AIA). Previously, AIG had declared that it would go ahead to position AIA as an independent entity and seek public listing on an Asian stock exchange, depending on market conditions and subject to regulatory approval, quoted the news paper.
AIG has already taken similar restructuring of its operations in Taiwan and the Philippines. In India, AIG has already sold AIG Systems & Solutions, a provider of information technology services and solutions to AIG companies worldwide, to Mphasis.